TIDMPODP
RNS Number : 2713Q
Pod Point Group Holdings PLC
17 February 2023
17 February 2023
Pod Point Group Holdings PLC (Symbol: PODP)
Preliminary unaudited results for the year ended 31 December
2022
"Steady growth and delivery, through significant volatility"
Pod Point Group Holdings plc (the "Company") and its
subsidiaries (the "Group"), one of the UK's market leading
providers of Electric Vehicle ("EV") charging solutions is pleased
to announce its preliminary unaudited results for the year ended 31
December 2022.
Key Financials Year to 31.12.22 Year to 31.12.21 Change
Total Revenue GBP71.4m GBP61.4m 16%
Adjusted EBITDA( (1 ) Loss GBP(7. GBP0.1m GBP(7.1)m
0 )m
EBITDA Loss GBP( 12.2 GBP(4.2)m
)m GBP(8.1)m
Loss Before Tax GBP(19. 9 GBP(5.6)m
)m GBP(14.3)m
Closing cash and short GBP74.1m GBP96.1m GBP(22.0)m
term investments
Group Highlights
-- Continued revenue growth to GBP71.4m, up by 16% on 2021, ahead of Q4 guidance.
-- By segment: Home revenue up 3%, Commercial revenue up 31%,
Owned Asset revenue up 108% and Recurring revenue up 107%.
-- Overall Gross Margin down from 27% to 23%, predominantly due to supply chain costs.
-- Home Gross Margin 20%, Commercial Gross Margin 22%, Owned
Asset Gross Margin 53%, Recurring Gross Margin 58%.
-- Growth of communicating units to over 195k, up by 42% across
all customers , strengthening the foundations of future recurring
revenue.
-- Adjusted EBITDA Loss GBP 7.0m as anticipated, with continued investment in growth.
-- Strong balance sheet with GBP74.1m cash, ahead of Q4
guidance, after planned investments in technology.
-- Growth prospects for 2023 remain strong, with guidance for 2023 maintained.
Strategic and Operational Summary
-- Significant growth in network usage, with electricity
transferred across our network up 113% at 367 GWh, helping to avoid
278k tonnes of CO2e [1] , up 118% on 2021.
-- Key new customers won or renewed including BMW, Mini, JCB, Zenith, B&Q, and DHL.
-- Excellent levels of customer service maintained with a 4.3
out of 5 rating on Trustpilot and a 4.7 out of 5 rating on
reviews.io with a 91% recommendation rate .
-- Home charge Average Basket Spend increased by 5% to GBP767 .
-- Headline Home Market Penetration (2) down by 3% to 15%, with
the conclusion of OZEV grant causing customers to pull forward home
charge purchases resulting in an overweight 2021 penetration,
increased consumer cost of home charge and vehicle delivery delays
all contributing.
-- Full year headline Home Market Penetration % expected to be
modestly lower than 2022, with an improving trajectory as we move
through the year.
-- Added a dedicated sales team focused on the housebuilding
sector to address expected growth opportunity.
-- Owned asset sites increased to 564 with 1,254 charging points including 118 DC rapid units.
-- Supply chain assurance delivered with the successful
transition of our high volume products to Celestica with initial
cost savings, as well as product supply maintained throughout
2022.
-- Increase in Technology headcount from 65 to 134 to deliver product and platform innovation.
Erik Fairbairn, Chief Executive Officer of Pod Point, said:
This was an exciting year for Pod Point, as we completed our
first full year as a listed company. We made excellent progress
towards our goal of travel that doesn't damage the earth and
continued to invest in scaling the business in preparation for the
UK ban of internal combustion engines in 2030.'
Like many others, we were negatively impacted by a number of
well-documented macro-economic and geopolitical events; however, I
am extremely proud of the team's performance. We achieved a 16%
growth in revenue, with the 31% growth in our commercial segment
being the highlight. We shipped and installed 68,693 charge points,
and ended the year with over 195,096 connected units on our
network. We transferred 367 GWh of electricity across our network
and as a result helped our customers avoid circa 278k tonnes of
CO2e. I am very much looking forward to accelerating the business
further as we head into 2023.
Financial Summary Year to 31.12.22 Year to 31.12.21 Year on year
GBP'000 GBP'000 change
Total revenue 71,409 61,415 16%
Home 41,386 40,272 3%
Commercial 23,894 18,192 31 %
Owned Assets 4,233 2,033 108%
Recurring Revenue 1,896 918 107%
Gross profit 16,589 16,345 2%
Gross margin 23% 27% -4%
------------------------- ----------------- ----------------- -------------
Home gross profit 8,082 11,347 -29%
Home gross margin 20% 28% -8%
------------------------- ----------------- ----------------- -------------
Commercial gross profit 5,173 3, 718 39%
Commercial gross margin 22% 20 % 2 %
------------------------- ----------------- ----------------- -------------
Adjusted EBITDA( (1 ) (7,040) 58 (7, 098 )
(12, 272
EBITDA Loss ) (8,103) (4, 169 )
(19, 924
Loss before tax ) (14,322) (5,602 )
Closing cash and short
term investments 74,103 96,112 (22,009)
( 1 ) See Notes of this report for definition of Adjusted
EBITDA
Notes
(1) Adjusted EBITDA is defined as earnings before interest, tax,
depreciation and amortisation and also excluding both amounts
charged to the income statement in respect of the Group's share
based payments arrangements and adjusting for large corporate
transaction and restructuring costs. These have been separately
identified by the Directors and adjusted to provide an underlying
measure of financial performance. The reconciliation is set out on
the income statement and N ote 6 provides a summary of the amounts
arising from the large corporate transactions and restructuring
costs.
Average annual recurring revenue per unit is calculated as
annual recurring revenue divided by the total number of Commercial
units installed and able to communicate at a period end. Commercial
units shipped but not installed by Pod Point are not included in
this statistic.
As discussed in Note 2 below, the amounts previously classified
as Norway in the year ended 2021 have been re-classified into
Commercial.
Headline KPIs Year to 31.12.22 Year to 31.12.21 Year on
year change
Total UK new PiV(1) sales 368,616 305,277 21%
Home units installed 53,964 54,977 -2%
Commercial units installed
and shipped 14,729 11,025 34%
---------------------------------- ----------------- ----------------- -------------
Home market penetration 1 5 % 18% -3pp %
Total Home units installed
and able to communicate 173,754 121,415 43%
---------------------------------- ----------------- ----------------- -------------
Total Commercial units installed
and able to communicate 21,342 16,005 33%
---------------------------------- ----------------- ----------------- -------------
Average annual recurring revenue GBP89 GBP57 +GBP32
per unit( (2 )
Total Owned Asset sites 564 453 25%
---------------------------------- ----------------- ----------------- -------------
Total Owned Asset Charge Points 1,254 984 27%
---------------------------------- ----------------- ----------------- -------------
Total Owned Asset Rapid/DC
Charge Points 118 73 62%
---------------------------------- ----------------- ----------------- -------------
(1) PiV defined as "Plug-in Vehicles"
(2) See Notes for definition
Current trading and outlook
2023 has started broadly in line with expectations. The market
for new plug-in vehicles in 2023 so far is showing continued growth
but at lower levels than the average for the second half of 2022,
which was up 17% on 2021. January 2023 registrations of new plug-in
vehicles were 26,403, an increase of 12% on 2022 and now
representing 20% of all new vehicles registered.
While we expect electric vehicle supply chain disruption of 2022
to continue into 2023, we continue to expect rapid growth in the UK
electric vehicle market for the medium and long term . Over the
past 12 months , new plug-in vehicle registrations represented c23%
of all vehicles registered, up from c19% in the prior 12 months. We
expect this to grow sharply over the coming years , driven by the
launch of many new battery electric models, lower vehicle prices
and the UK government's 2030 target for banning the sales of pure
internal combustion engine vehicles . Today, battery electric
vehicles account for only about 1.5% of total vehicles on the road,
highlighting the scale of the opportunity ahead for our business .
While the current price increases in electricity are an obvious
concern for consumers and businesses, in the majority of cases,
running costs of electric vehicles remain significantly cheaper
than for vehicles reliant on internal combustion engines. However,
cost of living concerns in the wider UK economy and the potential
impact of the invasion of and war in Ukraine may continue to impact
overall vehicle sales and sales of electric vehicles in the short
term .
Overall, our guidance for the full year 2023 is unchanged. We
expect that the margin pressures of 2022 will ease and lead to
improving margins in 2023, but will not yet return to levels of
2021. Revenues are expected to be in the range of GBP85 million to
GBP90 million with Adjusted EBITDA losses in the mid-single digits
millions.
To ensure we are ready to take advantage of the growth in EV in
2023 and beyond, we continue to invest across the business,
including in product enhancements and software development to grow
our recurring revenue streams. We expect to end 2023 with around
GBP50 million of cash on the balance sheet, after software
development spend anticipated to be up around 50% on 2022, in line
with our strategy.
Webcast presentation
There will be a webcast presentation for investors and analysts
this morning at 09:00 am. Please contact podpoint@tulchangroup.com
if you would like to attend.
Enquiries:
Tulchan (Public Relations adviser to Pod Point): James Macey
White / Mark Burgess / Matt Low / Arthur Rogers +44 (0)20 7353 4200
PodPoint@tulchangroup.com
BofA Securities (Joint Corporate broker): Marcus Jackson /
Mitchell Evans +44 (0)20 7628 1000
Numis (Joint Corporate broker) : Jonathan Wilcox / Andrew Coates
+44 (0)20 7260 1000
About Pod Point Group Holdings plc
Pod Point was founded in 2009 by CEO and entrepreneur Erik
Fairbairn. Driven by a belief that travel shouldn't damage the
earth, Pod Point has over 195k smart communicating charge points on
its network and is an official charge point supplier for major car
brands.
Pod Point installs a broad range of products from smart domestic
charge points to high power rapid chargers and load balancing
systems. Pod Point works with a broad range of organisations and
customers to offer home and commercial charging solutions with
customers including major retailers, hotels, restaurants and
leisure venues.
Pod Point is admitted to trading on the London Stock Exchange
under the ticker symbol "PODP."
For more information, visit https://pod-point.com/
Chief Executive's Review
Overview of results: A few bumps in the road, but the momentum
is unstoppable.
2022 was an exciting year at Pod Point. It was our first full
year of being a public company, but also a year that bought a
number of challenges specifically around the wider economy and the
global supply chain crisis.
Whilst, like many other companies, these macroeconomic factors
presented bumps in our growth trajectory, our team successfully
navigated the end of the OZEV grant, the extended lead times on
electric vehicles, and the challenges presented to our production
by the supply chain crisis.
Whilst navigating these issues in 2022, we continued to invest
in our business, because we see a strong industry growth trajectory
over the next decade as the UK navigates the journey to all
vehicles being electric.
In 2022, we shipped and installed 68,693 charge points, with the
commercial sector leading our growth with 31% increase year on
year. During the year, we also made significant steps towards
improving our gross margins, specifically by completing the move of
production of our highest volume products to leading global
manufacturer, Celestica, and by growing our average basket spend in
our home charge sector from GBP733 to GBP767. Like many other
companies, however, we were strongly impacted by elevated component
costs caused by the supply chain crisis, which outweighed the
underlying improvements. Whilst we don't believe the supply crisis
is over, we remain hopeful that we have seen the worst of it in
2022, and that we will see improvements in 2023.
We also saw exceptional growth in our small but vitally
important recurring revenue sector, specifically growing our
average recurring revenue per commercial unit from GBP57 to GBP89
and growing our overall recurring revenue by 107% year on year.
Furthermore, we saw 108% growth in our revenues from our owned
assets, predominantly driven by our relationship with Tesco.
Overall, we ended the year with circa 195k communicating charge
points, which is a significant step toward our plans to enable grid
load management functionality across our network.
Pod Point's mission is to make travel which doesn't damage the
earth, so we were also very pleased to see strong growth in the
energy transferred across our network, (172GWh FY21 vs 367GWh FY22)
and the corresponding growth in the amount of carbon avoided by our
customers (131k tonnes FY21 vs 278k tonnes FY22).
We additionally worked hard to achieve full product compliance
with the latest EV Smart Charging Regulations that came into force
in June and December 2022 - a significant milestone that was not
consistently achieved by all competitors in the industry.
Looking forwards, I foresee a significant acceleration of the UK
EV market as we head towards the government's 2030 internal
combustion engine ban. As we proceed into the 2040s, I expect we
will reach the point at which non-electric vehicles become a rare
site on our roads. I see very significant future opportunity for
Pod Point within this expected sector growth. The growth journey is
never smooth, as we have seen in 2022; but overall, I am very
excited about what we can achieve over the coming years.
I would like to extend a massive thank you to the whole team at
Pod Point. The entire team dug deep to deal with the various
challenges presented in 2022, and through their hard work and
effort ensured that we made significant progress towards our goal
of making travel that doesn't damage the earth.
Sector Review
In the Home business segment:
-- Despite significant disruptions by the global supply chain
crisis and the ending of OZEV grants, we further increased revenue
after a year of 98% growth in 2021. Revenue of GBP41.4m million was
3% up compared to of GBP40.3 million in full year 2021.
-- New plug-in vehicle (1) registrations increased 21% to
368,616 in 2022 from 305,277 in 2021, a significant reduction on
the 74% growth of 2021. This is a reflection of the restricted flow
of new EVs, especially in the second half of 2022. The number of
Pod Point Home units installed fell slightly to 53,964 versus
54,977 in the full year of 2021.
-- Our headline market penetration of new plug-in vehicle
registrations therefore decreased to 15% from 18% in the full year
2021. There are a range of factors that we believe contributed to
this including:
o Conclusion of OZEV grant caused customers to pull forward home
charge purchases causing an overweight 2021 penetration.
o Increased consumer cost of home charge units (from cGBP550 to
cGBP900) as a result of the end of the OZEV grant may have reduced
the average ratio of home charge units to plug-in vehicles.
o Extended vehicle lead times could have reduced the
effectiveness of our referral agreements with OEMs as customers may
delay ordering their home charge unit until closer to the expected
delivery date of their vehicle.
o High demand and reduced vehicle availability may have limited
the number of bundled home charge unit incentives car companies
offer.
We have a suite of activities in flight over the year ahead
which we expect to address this situation, including work on a new
Solo Unit, various smart charging updates to our app, improvements
to our ordering system and additional marketing activity.
With the volatility we have seen in the automotive market over
the year, we suspect that this metric based on SMMT registrations
has become a less clean indicator of our progress. That said, we
expect this metric to be modestly lower for full year 2023, with an
improving trajectory throughout the year. We further note that the
market remains volatile and is likely not currently in a steady
state, so this could develop further.
-- Percentage gross margin in 2022 decreased to 20% compared to
2021 at 28%, a significant cause of which was the GBP2.2 million
additional brokerage costs of securing components via the spot
market in the early phases of the supply chain crisis in order to
ensure product stock. This was partially offset by an increase in
average revenue per unit to GBP767 from GBP733 in 2021.
-- The lower revenue growth and reduced percentage gross margin
drove total gross margin lower in 2022, falling to GBP8.1 million
compared to GBP11.3 million in 2021.
-- We won or renewed a number of key customer contracts during
the year including BMW, Mini, and Zenith, and now have over 100
active fleet accounts with businesses including Coca-Cola, DHL and
Royal Mail.
In the Commercial business segment:
-- We delivered a strong performance, with revenue of GBP23.9
million compared to 2021 of GBP18.0 million, an increase of
31%.
-- Number of units installed increased to 3,867 from 3,838 in
2021 and the number of units sold directly to customers increased
to 10,862, compared to 7,187 in 2021. This represents a direct sale
increase of 51%.
-- The increased revenues helped to increase total gross margin
in 2022 to GBP5.2 million, compared to 2021 at GBP3.7 million, an
increase of 39%.
-- Percentage gross margin increased in from 20% to 22% in 2022,
due to a shift in the mix of installations toward higher margin
direct sale units, and the elimination of losses in Norway.
-- We won or renewed several key customer contracts during the year, including JCB and, B&Q.
In the Recurring Revenue business segment:
-- We delivered excellent growth in our recurring revenue
segment, with revenue of GBP1.9 million compared to 2021 at GBP0.9
million, an increase of 107%. Network revenues increased to GBP1.0
million compared to 2021 at GBP0.8 million
-- This increase in revenues helped to increase gross margin in
2022 to GBP1.1 million, compared to 2021 of GBP0.4 million, an
increase of 166%.
-- In addition, percentage gross margin in 2022 increased to 58%
compared to 45% in 2021 , an increase of 13 percentage points, with
the average annual recurring revenue per commercial unit installed
and able to communicate increasing to GBP89, compared to GBP57 in
2021.
-- The number of Commercial units installed and able to
communicate at the year end increased to 21,342 from 16,005 at the
end of 2021. All recurring revenues in both 2022 and 2021 were
derived from these units.
-- The number of Home units installed and able to communicate at
the year end increased to 173,754 from 121,415 at the end of 2021.
This growth is strategically significant as we seek to expand our
recurring revenue products across these units.
In the Owned Asset business segment:
-- We delivered a strong performance with revenue of GBP4.2
million compared to 2021 at GBP2.0 million, an increase of
108%.
-- The total number of sites installed at the period end
increased to 564 from 453 at the end of 2021. The total number of
units installed at the period end increased to 1254 from 984 at the
end of 2021, including 118 DC rapid units at the end of 2022
compared to 73 at the end of 2021.
-- This increase in revenues and units helped to increase gross
margin in 2022 to GBP2.2 million compared to 2021 at GBP0.9
million, an increase of 158%.
-- Percentage gross margin in 2022 increased to 53% compared to
2021 at 43%, an increase of 10 percentage points. A contractual
period through 2021 of the provision of free electricity by Pod
Point stopped at 179 sites in February 2022 and at all 198 sites by
the end of July 2022, significantly reducing costs in 2022.
-- Gross capital deployed on assets increased to GBP6.3 million
at the end of 2022, compared to GBP3.9 million at the end of
2021.
Financial Performance
It was a steady performance by the business in 2022 with total
revenue of GBP71,409k (2021: GBP61,415k), a year-on-year increase
of 16%. The biggest growth came from our Commercial business
segment, and we also saw very high growth in Recurring Revenue and
Owned Assets.
This increase in revenues helped, in spite of additional supply
chain costs, to deliver a small increase in total gross profit in
2022 of GBP16,589k (2021: GBP16,345k) a year on year increase of
2%.
Driven by the additional costs of sourcing components in the
spot market earlier in the year, total percentage gross margin in
2022 decreased to 23% (2021: 27%), a year-on-year reduction of 4
percentage points. We believe that there will be less need to do
spot component sourcing in 2023.
The increase in revenues and gross profit was combined with
increased overhead spend to invest in driving future growth,
focussed on sales and marketing, customer service and team
development. This moved the business to an adjusted EBITDA loss of
GBP7,040k in 2022 (2021: positive GBP58k).
After further investment of GBP9,904k in software and product
development and controlled investment in Owned Assets, 2022 year
end cash and short term investments were GBP74,103k compared to
GBP96,112k at the end of 2021.
Unadjusted losses after tax increased to GBP20,211k in 2022
(2021: GBP14,322k). EBITDA losses increased in 2022 with losses of
GBP12,272k (2021: losses of GBP8,103k). There were increased
depreciation and amortisation costs of GBP7,743k (2021: GBP4,929k),
while net financing income was GBP91k (2021: net finance costs of
GBP1,290k).
Total administrative expenses as disclosed on the Income
Statement increased to GBP38,065k (2021: GBP29,377k), a year on
year increase of 30%. This increase was due to the growth in the
size of the business and the additional staff required to deliver
this growth, the full year of cost of being a Listed company and
additional depreciation and amortisation costs as a result of
additional funds being invested in Owned Assets and intangible
asset development. The business continues to increase its support
costs to maintain growth, to fund its requirements as a listed
business and to pay significant one-off costs in both periods.
Looking at these individually:
-- Administrative expenses excluding one-off large corporate
transaction and restructuring costs, share based payments and
depreciation and amortisation costs increased to GBP25,090k (2021:
GBP16,287k) a year-on-year increase of 54%. This increase was due
to the growth in the size of the business and the additional staff
required to deliver this growth and the ongoing costs of being a
Listed company.
-- Depreciation and amortisation costs increased in 2022 to
GBP7,743k ( 2021: GBP4,929k) as a result of additional funds being
invested in Owned Assets as well as research and development.
-- Following the listing in November 2021, Pod Point incurred
share based payment charges relating to a number of share awards
that were implemented at or soon after listing, resulting in a 2022
charge to the P&L of GBP4,545k (2021: GBP2,422k) and national
insurance accrued on share based payment charges of GBP630k (2021:
GBP343k).
-- In 2022, GBP57k of one-off large corporate transaction and
restructuring costs were incurred (2021: GBP5,739k). 2021 costs
related mainly to the listing in November 2021.
Net finance income increased to GBP91k in 2022 (2021: net
finance costs of GBP1,290k ), as a result of shareholder loans
repaid upon listing in November 2021 and therefore finance costs in
2022 are limited.
Management of the balance sheet remained strong. Working capital
movements, despite continued business growth, were limited across
trade and other receivables, inventory and trade and other
payables. Fixed Assets grew as we continue to build the software
platforms that will drive future growth.
Closing cash and short term investments were GBP74,103k (2021:
GBP96,112k). At 31 December 2021, GBP50,000k of cash had been
placed on a six-month bank deposit and was classified as a short
term investment. At 31 December 2022, there were no short-term
investments. Closing net assets were GBP184,157k (2021:
GBP199,835k)
Cash outflow from operating activities increased by GBP6,752k to
GBP8,968k ( 2021: GBP2,216k) . This was primarily due to a larger
operating loss, as well as a reduction in the inflow of working
capital from creditors due to lower growth in the year.
Cash flow from investing activities changed from a significant
outflow to an inflow of GBP38,206k (2021: outflow of GBP57,190k).
This swing is primarily the result of a GBP50m investment in bank
deposits in 2021 that was redeemed in 2022. Aside from this, the
business invested GBP9.9m in capitalised software development to
drive future recurring revenues. In 2021, GBP50m of the investing
activity related to the purchase of short-term investments, which
are long-term bank deposits classified as investments due to their
tenor. No short-term investments exist in 2022.
Cash flow from financing activities moved from an inflow in 2021
to an outflow of GBP1,247k (2021: inflow of GBP102,575k). The 2022
outflows on lease liabilities and loan repayment contrast with the
2021 listing of the business with gross funds raised of GBP120,000k
less transaction costs of GBP7,664k and with net shareholder loans
of GBP9,280k repaid following the listing in 2021.
During 2022, transactions with related parties included sale of
goods of GBP335k (2021: GBP309k), purchase of goods of GBP390k
(2021: GBP850k), and interest on intercompany loans of GBPnil
(2021: GBP1,038k). These transactions were undertaken with the two
shareholders EDF Energy Customers Limited and Legal & General
Capital Investments Limited and their subsidiaries.
Market Opportunity and Outlook
We continue to see rapid growth in the UK electric vehicle
market, with 26,403 new plug-in vehicle registrations in January
2023, 12% up on January 2022 and representing 20% of all vehicles
registered. We expect the mix of vehicles to continue to shift to
battery electric vehicles as it grows its share of plug-in
vehicles. This primarily comes on the back of more choice for
consumers, with more new battery electric models expected to be
launched in 2023 at more accessible price points. Battery electric
vehicles still only constitute 1.5% of total vehicles on the road,
so the growth potential for the business remains significant.
Whilst the current price increases in electricity are an obvious
concern for consumers and businesses, we do not expect them to
materially impact sales of electric vehicles. Rather, the ongoing
running costs of electric vehicles will in almost all cases
continue to be significantly cheaper than vehicles reliant on
internal combustion engines.
We expect the Government to continue with reduced direct fiscal
incentives and to focus on indirect actions, such as the changes to
planning regulations that require developers to include charge
points in new properties. We see this as the right strategy and a
developing opportunity for Pod Point.
We anticipate continued volatility in macroeconomic conditions,
high but easing inflation, war in Ukraine, energy price volatility
and cost-of-living pressures. We expect global supply chain
challenges to continue but to ease through 2023 with an ongoing
impact on the supply of new vehicles, as seen by currently extended
vehicle lead times.
Given the significant future opportunity we see in the coming
years, we plan to continue investing in our business broadly in
line with our IPO strategy.:
-- Firstly, we will continue to invest in our systems and
processes to ensure that we are ready to serve the scale of
opportunity we see ahead of us.
-- Secondly, we will continue to improve and expand our product
offering to serve more routes to market. At present, we are active
developing our offerings for fleets and housing developers. We will
deliver innovation that improves our product proposition in terms
of ease of use, cost reduction and carbon reduction. It is
important that the EV revolution does not leave anybody behind. We
will be investing in our products to meet the needs of these
customers.
-- Thirdly, we will continue to invest in our software
capability to realise a number of recurring revenue business
models. Our charge points are already smart, so we will be building
software on top of our network to enable our charge points to work
in harmony with the grid at both a local and national level. With
so many consumers moving to a reliance on electricity for their
driving, as well as potentially for heating, we are going to see a
significant increase in the demand for electricity across the UK.
Amongst other activities, we are building our network of charge
points and associated technology to carefully manage how energy
flows into the nation's electric cars and hence provide commercial
balancing services into the national grid and/or distribution
network operators. We expect to do this in a way which doesn't
materially inconvenience the EV driver. During the year, we have
built our technical team to enable this, and have made various
improvements to our systems in preparation for using our network
for the purpose of grid load management.
-- Finally, we will make targeted investments in Owned Assets,
although at a lower level than we communicated at IPO. We will
focus on multimodal charging opportunities at locations that will
benefit from our capability across multiple charge rates. These
charge points will be a mix of AC charge points for those locations
with longer dwell times and DC units capable of rapid charging so
that drivers can quickly get on their way. Given the increase in
interest rates, general move towards higher ground rents and a more
challenging macro-economic climate, a reduced rate of Owned Asset
investment will also allow us to retain a higher cash level on our
balance sheet.
We remain confident that our strategy will allow us to maximise
the opportunity presented to us by the ongoing growth in electric
vehicles.
Director's Responsibilities Statement
The Directors are required to prepare financial statements for
each financial year which present a true and fair view of the
financial position of the Company and of the Group and the
financial performance and cash flows of the Company and of the
Group for that period. The Directors have elected to prepare the
Group and parent company financial statements in accordance with
the UK-adopted International Financial Reporting Standards
('IFRSs') in conformity with the Companies Act 2006.
In preparing those financial statements, the Directors are
required to:
-- select suitable accounting policies in accordance with IAS 8:
'Accounting Policies, Changes in Accounting Estimates and Errors'
and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
-- provide additional disclosures when compliance with the
specific requirements in IFRSs is insufficient to enable users to
understand the impact of particular transactions, other events and
conditions on the Company and of the Group's financial position and
financial performance;
-- state whether UK-adopted international accounting standards
have been followed, subject to any material departures disclosed
and explained in the financial statements; and
-- prepare the accounts on a going concern basis unless, having
assessed the ability of the Company and the Group to continue as a
going concern unless it is appropriate to presume that the Company
and/ or the Group will not continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's and
Group's transactions and which disclose with reasonable accuracy at
any time the financial position of the Company and of the Group and
enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Neither the Company nor the Directors accept any liability to
any person in relation to the annual financial report except to the
extent that such liability could arise under English law.
Accordingly, any liability to a person who has demonstrated
reliance on any untrue or misleading statement or omission shall be
determined in accordance with section 90A and schedule 10A of the
Financial Services and Markets Act 2000.
Basis of Preparation and General Information
The consolidated financial information for Pod Point Group
Holdings Plc (the Company) and its subsidiaries (together, the
Group) set out in this preliminary announcement has been derived
from the unaudited consolidated financial statements of the Group
for the year ended 31 December 2022 ("the financial statements").
The Company's Annual Report and Accounts ("Annual Report") for the
year ended 31 December 2022 will be published in April 2023. It
will be sent to shareholders and posted on its website:
www.pod-point.com/investors and uploaded to the National Storage
Mechanism in accordance with LR 9.6.1 R on the same date
The unaudited preliminary announcement was approved by the Board
of directors on 16 February 2023. This unaudited preliminary
announcement does not constitute the full financial statements
prepared in accordance with International Financial Reporting
Standards (IFRS). The unaudited consolidated financial statements
for the year ended 31 December 2022 and the financial information
for the year ended 31 December 2022 do not constitute statutory
accounts within the meaning of section 434 of the Companies Act
2006. The statutory accounts for the year ended 31 December 2021
have been delivered to the Registrar of Companies and received an
unqualified auditors' report, did not include a reference to any
matters to which the auditors drew attention by way of an emphasis
of matter and did not contain a statement under sections 498 (2) or
(3) of the Companies Act 2006.
The financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006 and International Financial
Reporting Standards adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union and have been
prepared on a going concern basis.
Further information including on accounting policies and the
full accounting notes will be set out in the Annual Report, and
such information for 2021 was included in the 2021 Annual Report
which was published on 9(th) May 2022.
Consolidated Income Statement
Year Ended
31 December Year Ended
2022( (7 31 December
Notes ) 2021
----- ------------ ------------
GBP'000 GBP '000
Revenue (including OZEV revenues) 2,4 71,409 61,415
Cost of sales (54,820) (45,070)
------------ ------------
Gross profi t 16,589 16,345
------------ ------------
Other income 4 1,461 -
Administrative expenses (38,065) (29,377)
------------ ------------
Operating loss 3 (20,015) (13,032)
Analysed as:
Adjusted EBITDA(1) (7, 040 ) 58
Adjusting large corporate transactions
and restructuring costs( (2) 6 ( 57 ) (5,739)
Share-based payments 14 (5, 175 ) (2,422)
(12, 272
EBITDA(1) ) (8,103)
Amortisation and depreciation (7,743) (4,929)
------------ ------------
Group operating loss (20,015) (13,032)
------------ ------------
Finance income 7 457 -
Finance costs 7 (366) (1,290)
------------ ------------
(19, 924
Loss before tax ) (14,322)
Income tax expense (287) -
------------ ------------
(20, 211
Loss after tax ) (14,322)
------------ ------------
Basic and diluted loss per ordinary
share 15 GBP(0.13) GBP(0.13)
Notes:
(1) EBITDA is defined as earnings before interest, tax,
depreciation and amortisation, and is considered by the Directors
to be a key measure of financial performance. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortisation and excluding both amounts charged to the income
statement in respect of the Group's share based payments
arrangements and also adjusting for large corporate transaction and
restructuring costs. These have been separately identified by the
Directors and adjusted to provide an underlying measure of
financial performance. The reconciliation is set out on the income
statement and Note 6 provides a summary of the amounts arising from
the large corporate transactions and restructuring costs.
(2) See Note 6
(3) All amounts relate to continuing activities.
( 4 ) All realised gains and losses are recognised in the
consolidated income statement and there is no other comprehensive
income.
( 5 ) The notes on pages 16 to 26 form part of the Consolidated Financial Statements.
( 6 ) There is no other comprehensive income in the years
presented and therefore no separate statement of other
comprehensive income is presented.
( 7 ) As set out in the basis of preparation, the year ended 31 December 2022 is unaudited
Consolidated Statement of Financial Position
As at As at
31 December 31 December
Notes 2022 2021
----- ------------ ------------
GBP'000 GBP'000
Non-current assets
Goodwill 8 77,639 77,639
Intangible assets 8 33, 236 29,421
Property, plant and equipment 9 5,498 4,277
Deferred tax asset 5,670 7,379
Right of use assets 2,914 1,400
------------ ------------
124,957 120,116
------------ ------------
Current assets
Inventories 10 7,342 8,214
Trade and other receivables 11 26, 882 24,041
Short-term investments - 50,000
Cash and cash equivalents 74,103 46,112
------------ ------------
108,327 128,367
------------ ------------
Total assets 233,284 248,483
Current liabilities
Trade and other payables 12 (36, 419 ) (36,173)
Loans and borrowings 13 (2,842) (707)
Lease liabilities (1,634) (896)
Provisions (265) (160)
------------ ------------
(41, 160 ) (37,936)
------------ ------------
Net current assets 67,167 90,431
============ ============
Total assets less current liabilities 192,124 210,547
============ ============
Non-current liabilities
Loans and borrowings 13 (481) (2,326)
Lease liabilities (1,515) (763)
Deferred tax liability ( 5 ,670) (7,379)
Provisions (301) (244)
------------ ------------
( 7 ,967) (10,712)
------------ ------------
Total liabilities (49,127) (48,648)
Net assets 184, 157 199,835
============ ============
Equity
Share capital 154 154
Share premium 140,203 140,057
Other reserves 6,651 2,264
ESOP reserve (1,318) (1,318)
Retained earnings 38,467 58,678
------------ ------------
184, 157 199,835
============ ============
Consolidated Statement of Changes in Equity
As at 31 December 2022:
Share Share Other Retained Total
Capital Premium Reserves ESOP Reserve Earnings equity
--------- -------- --------- ------------ --------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January 2022 154 140,057 2,264 (1,318) 58,678 199,835
Loss after tax and total comprehensive (20, 211 (20,
income for the year - - - - ) 211 )
Issue of shares during the
year - 158 (158) - - -
Share based payments - - 4,545 - - 4,545
Share issuance costs - (12) - - - (12)
Balance as at 31 December 184,
2022 154 140,203 6,651 (1,318) 38,467 157
========= ======== ========= ============ ========= =======
As at 31 December 2021:
Share Share Other Retained Total
Capital Premium Reserves ESOP Reserve Earnings equity
-------- -------- --------- ------------ --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1 January 2021 - 26,400 -- - 72,373 98,773
Loss after tax and total comprehensive
income for the year - - - - (14,322) (14,322)
Waived shareholder loan - - - - 627 627
Issue of shares during the
year 153 112,340 - - - 112,493
Issue of shares pursuant to
the share incentive plan 1 1,317 - (1,318) - -
Share based payments - - 2,264 - 2,264
Balance as at 31 December
2021 154 140,057 2,264 (1,318) 58,678 199,835
======== ======== ========= ============ ========= ========
Consolidated Statement of Cash Flow
Year Ended Year Ended
31 December 31 December
Notes 2022 2021
----- ------------ ------------
GBP'000 GBP'000
Cash flows from operating activities
Operating loss (20,015) (13,032)
Adjustment for non-cash items:
Amortisation of intangible assets 8 5,484 3,670
Depreciation of tangible assets 9 1,123 650
Depreciation of right of use assets 1,135 609
Share based payment charges 14 4,545 2,422
Tax (287) -
Loss on impairment of intangible
assets 8 604 -
Loss on disposal of tangible assets 4 -
(7, 407 ) (5,681)
Changes in working capital
(Increase)/Decrease in inventories 872 (2,592)
(Increase)/Decrease in trade and
other receivables (2, 841 ) (9,724)
Increase/(Decrease) in trade and
other payables 246 15,693
Increase/(Decrease) in provisions 162 88
------------ ------------
(1,561) 3,465
------------ ------------
Net cash flow (used in) operating
activities (8,968) (2,216)
Cash flows from investing activities
Purchase of tangible assets 9 (2, 348 ) (2,625)
Purchase of intangible assets 8 (9,904) (4,565)
Redemption of/(cash invested in)
short-term investments 50,000 (50,000)
Interest received 458 -
------------ ------------
Net cash flow (used in) investing
activities 38,206 (57,190)
Cash flows from financing activities
Shares issued - 120,074
Issuance cost of shares - (7,664)
Proceeds from new borrowings 13 1,243 1,477
Loan repayment 13 (990) (9,346)
Payment of principal of lease liabilities (1, 126 ) (648)
Payment of lease interest (216) (118)
Other Interest paid (158) (1,200)
------------ ------------
Net cash flows (used in) / generated
by financing activities (1, 247 ) 102,575
Net increase in cash and cash
equivalents 27,991 43,169
Cash and cash equivalents at beginning
of the year 46,112 2,943
Closing cash and cash equivalents 74,103 46,112
============ ============
Please note that GBP50,000k of cash was held in a short term
deposit account at the 31 December 2021 and for reporting purposes
is shown as an investment above. Closing cash and short term
investments at 31 December 2021 totalled GBP96,112k.
Consolidated Notes to the financial statements
1. General information
Pod Point Group Holdings plc (referred to as the "Company") is a
public limited company incorporated in the United Kingdom under the
Companies Act 2006, and registered in England. Its registration
number is 12431376. The registered address is 28-42 Banner Street,
London EC1Y 8QE.
The principal activity of the Company and its subsidiary
undertakings (the "Group") during the years presented is that of
development and supply of equipment and systems for recharging
electric vehicles. The entire issued share capital of the Company
was admitted to trading on the Main Market of the London Stock
Exchange on 9 November 2021. All figures presented in this
unaudited preliminary announcement are in GBP sterling.
When considering the basis of Going Concern, the Directors have
made enquiries and reviewed cash flow forecasts and available
facilities for at least the next 12 months (including subsequent
events). Taking these into account the Directors have formed a
judgement, at the time of approving the unaudited preliminary
announcement, that there is a reasonable expectation that the
Company has adequate resources to continue in operational existence
for the foreseeable future. This judgement has been formed taking
into account the principal risks and uncertainties that the Company
faces.
2. Segment reporting
The Group has four operating and reportable segments which are
considered:
Reportable Segment Operations
------------------ -------------------------------------------------
UK Home Activities generated by the sale of charging
units to domestic customers for installation
in homes.
UK Commercial Activities generated by the sale and installation
of charging units in commercial settings,
such as the destination, workplace and en-route
routes to market.
Owned Assets Operating activities relating to customer
contracts, in which Pod Point owns the charging
point assets but charges end customers for
the use of these assets and, at some sites,
charges a fee for provision of media screens
on the units for advertising purposes.
Recurring Operating activities relating to the recurring
revenue generated on charging units, relating
to fees charged from the ongoing use of the
Pod Point software and information generated
from the management information system.
There are no transactions with a single external customer
amounting to 10 per cent. or more of the Group's revenues.
Work, destination and en-route revenues are routes to market
within the UK Commercial segment, rather than individual business
segments with the types of installations being similar in all
three.
Revenue has been further split into OZEV and non-OZEV revenues
for each segment. OZEV revenues are the portion of revenue
generated from an install, which are claimed from the DVLA by the
Group on behalf of customers who are eligible for the EVHS
government grant.
A breakdown of revenues and non-current assets by geographical
area is included in Note 4. Assets and liabilities are not reviewed
on a segmental basis and therefore have not been included in this
disclosure.
The following amounts previously recorded in the Norway segment
for the year ending 31 December 2021 have been reclassified into
Commercial. The Norway segment has been subsumed into the
Commercial segment for the year ended 31 December 2022 as is no
longer a material segment requiring separate disclosure, therefore
the comparative period has also been restated for comparativeness.
The nature of the products and services are the same and the two
segments have similar economic effects, therefore aggregation is
appropriate:
Year Ended
31 December
2021
------------
GBP'000
Norway revenue 233
Norway cost of sales (444)
Gross margin (211)
Segmental Analysis for the year ended 31 December 2022:
UK UK Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue, non-OZEV 34,891 23,257 4,233 1,896 64, 277
-------- ----------- ------- --------- --------
OZEV revenue 6,495 637 - - 7,132
-------- ----------- ------- --------- --------
Revenue 41,386 23,894 4,233 1,896 71,409
Cost of sales (33,304) (18,721) (1,992) (803) (54,820)
-------- ----------- ------- --------- --------
Gross Margin 8,082 5,173 2,241 1,093 16,589
-------- ----------- ------- --------- --------
Other income 1,461
-------- ----------- ------- --------- --------
Administrative
Expenses (38,065)
-------- ----------- ------- --------- --------
(20, 015
Operating Loss )
-------- ----------- ------- --------- --------
Finance income 457
-------- ----------- ------- --------- --------
Finance costs (366)
-------- ----------- ------- --------- --------
Loss before (19, 924
tax )
-------- ----------- ------- --------- --------
Segmental Analysis for the year ended 31 December 2021:
UK UK Owned Total
Home Commercial Assets Recurring Group
-------- ----------- ------- --------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- ----------- ------- --------- --------
Revenue, non-OZEV 24,729 17,519 2,033 918 45,199
-------- ----------- ------- --------- --------
OZEV revenue 15,543 673 - - 16,216
-------- ----------- ------- --------- --------
Revenue 40,272 18,192 2,033 918 61,415
Cost of sales (28,925) (14,474) (1,165) (506) (45,070)
-------- ----------- ------- --------- --------
Gross Margin 11,347 3,718 868 412 16,345
-------- ----------- ------- --------- --------
Administrative
Expenses (29,377)
-------- ----------- ------- --------- --------
Operating Loss (13,032)
-------- ----------- ------- --------- --------
Finance income -
-------- ----------- ------- --------- --------
Finance costs (1,290)
-------- ----------- ------- --------- --------
Loss before
tax (14,322)
-------- ----------- ------- --------- --------
3. Group operating loss
Loss for the year has been arrived at after
charging/(crediting):
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Amortisation of intangible fixed assets 5,484 3,670
Depreciation of tangible fixed assets 1,123 650
Depreciation of right of use asset 1,135 609
Exchange differences 56 (10)
Cost of inventories recognised as an expense 28,818 24,554
Staff costs 28,628 22,418
Loss on impairment of intangible assets 604 -
Loss on disposal of tangible assets 4 -
4. Revenue and non-current assets
Revenue, analysed geographically between markets, was as
follows:
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
United Kingdom 71,277 61,182
Norway 132 233
------------ -------------
71,409 61,415
============ =============
The geographical analysis of revenue and net revenue is on the
basis of the country of origin in which the client is invoiced.
Revenue, split between OZEV revenues and non-OZEV revenues was
as follows:
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Non-OZEV revenue 64,277 45,199
OZEV revenue 7,132 16,216
------------ -------------
71,409 61,415
============ =============
All OZEV revenue was earned in the UK. Non-current assets are
all held within the UK for all periods presented.
Other income represents grant income relating to the R&D
expenditure credit for relief on the Group's research and
development costs.
5. Directors and employees
The Group operates a defined contribution pension scheme. The
assets of the scheme are held separately from those of the Group in
an independently administered fund. The pension cost represents
contributions payable by the Group to the fund and amounted GBP271k
to for the year ended 31 December 2022 (2021: GBP416k).
Pension contributions payable amount at 31 December 2021 was
GBP180k (2021: GBP101k).
The table below presents the staff costs of these persons,
including those in respect of the Directors, recognised in the
income statement.
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Wages and salaries 20, 671 17,419
Social security costs 3,118 2,115
Costs of defined contribution scheme 294 416
Net share based payment expense 4,545 2,422
------------ -------------
28,628 22,372
============ =============
Staff costs presented in this note reflect the total wage, tax
and pension cost relating to employees of the Group. These costs
are allocated between administrative expenses, cost of sales or
capitalised where appropriate as part of Software Development
intangible assets. The allocation between these areas is dependent
on the area of business the employee works in and the activities
they have undertaken.
During the year ended 31 December 2022, GBP6, 730k of staff
costs were capitalised (2021: GBP2,904k).
Key management personnel
Key management personnel of the Group are the members of the
Board of Directors as well certain other members directing and
controlling the activities of the Group. Directors appointed by EDF
are remunerated by EDF and their costs are not recharged and an
allocation of cost is not considered readily identifiable.
Key management costs include the following expenses:
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Short-term employee benefits 3,058 3,528
Post-employment benefits 56 85
Net share based payment expense 2,987 2,046
------------ -------------
6,101 5,659
============ =============
6. Adjusting large corporate transaction and restructuring costs
Adjusting large corporate transaction and restructuring costs,
for the purposes of presenting non-IFRS measure of adjusted EBITDA
are as follows:.
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Costs related to raising finance and other
corporate projects - 5,536
Restructuring costs 57 203
57 5,739
============ =============
Raising finance relates to equity financing which given its
scale in the period is not considered to be in the normal course of
the operating business.
Restructuring costs in 2021 are staff related costs arising from
changes to the senior management team and department
reorganisations that were not in the normal course of the operating
business. Restructuring costs in 2022 related to the closure of the
Norway branch.
7. Finance income and finance costs
Net financing costs comprise bank interest income and interest
expense on borrowings, and interest expense on lease
liabilities.
Year Ended Year Ended
31 December 31 December
2022 2021
------------ -------------
GBP'000 GBP'000
Interest on bank deposits 457 -
------------ -------------
Finance Income 457 -
------------ -------------
Interest on loans (150) (1,172)
Interest on lease liabilities (216) (118)
------------ -------------
Finance Costs (366) (1,290)
------------ -------------
Net finance /(costs) recognised in the income
statement 91 (1,290)
============ =============
8. Intangible assets
Intangible assets as at 31 December 2022:
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 10,800 13,940 13,371 77,639 115,750
Additions 9,904 - - - 9,904
----------- ------- -------------- -------- -------
At 31 December 2022 20,704 13,940 13,371 77,639 125,654
----------- ------- -------------- -------- -------
Accumulated amortisation
and impairment:
At 1 January 2022 5,646 1,336 1,708 - 8,690
Amortisation 3,896 697 891 - 5,484
Impairment 604 604
----------- ------- -------------- -------- -------
At 31 December 2022 10,146 2,033 2,599 - 14,779
----------- ------- -------------- -------- -------
Carrying amounts:
At 31 December 2022 10,557 11,907 10,772 77,639 110,874
=========== ======= ============== ======== =======
Intangible assets as at 31 December 2021:
Customer
Development Brand Relationships Goodwill Total
----------- ------- -------------- -------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2021 6,235 13,940 13,371 77,639 111,185
Additions 4,565 - - - 4,565
At 31 December 2021 10,800 13,940 13,371 77,639 115,750
----------- ------- -------------- -------- -------
Accumulated amortisation:
At 1 January 2021 3,564 639 817 - 5,020
Amortisation 2,082 697 891 - 3,670
At 31 December 2021 5,646 1,336 1,708 - 8,690
----------- ------- -------------- -------- -------
Carrying amounts:
At 31 December 2021 5,154 12,604 11,663 77,639 107,060
=========== ======= ============== ======== =======
9. Property, Plant and Equipment
Property Plant and Equipment as at 31 December 2022:
S/Term Plant
Leasehold & Furniture Computer Owned
Property Machinery & fittings Equipment Assets Total
---------- ---------- ----------- ---------- ------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2022 31 229 19 837 4,698 5,814
Additions 2 42 - 499 1,805 2,348
Disposals - - - - (7) (7)
---------- ---------- ----------- ---------- ------- -------
At 31 December 2022 33 271 19 1,336 6,496 8,155
---------- ---------- ----------- ---------- ------- -------
Accumulated depreciation
and impairment:
At 1 January 2022 31 153 19 553 781 1,537
Depreciation 1 49 - 275 798 1,123
Disposals (3) (3)
---------- ---------- ----------- ---------- ------- -------
At 31 December 2022 32 202 19 828 1,576 2,657
---------- ---------- ----------- ---------- ------- -------
Carrying amounts:
At 31 December 2022 1 69 - 508 4,920 5,498
========== ========== =========== ========== ======= =======
Property Plant and Equipment As at 31 December 2021:
S/Term Plant
Leasehold & Furniture Computer Owned
Property Machinery & fittings Equipment Assets Total
---------- ---------- ----------- ---------- ------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost:
At 1 January 2021 31 159 19 616 2,364 3,189
Additions - 70 - 221 2,334 2,625
---------- ---------- ----------- ---------- ------- -------
At 31 December 2021 31 229 19 837 4,698 5,814
---------- ---------- ----------- ---------- ------- -------
Accumulated depreciation
and impairment:
At 1 January 2021 30 119 19 471 248 887
Depreciation 1 34 - 82 533 650
---------- ---------- ----------- ---------- ------- -------
At 31 December 2021 31 153 19 553 781 1,537
---------- ---------- ----------- ---------- ------- -------
Carrying amounts:
At 31 December 2021 - 76 - 284 3,917 4,277
========== ========== =========== ========== ======= =======
10. Inventories
As at As at
31 December 31 December
2022 2021
------------ ------------
GBP'000 GBP'000
Finished goods 5,523 4,962
Work in progress 1,819 3,252
------------ ------------
7,342 8,214
============ ============
The cost of inventories recognised as an expense during the year
ended 31 December 2022 in respect of continuing operations was
GBP28,818k (2021: GBP24,554k). Increase in cost of inventories
during the year was due to charge regulations imposed in June and
December 2022, leading to additional rework costs on existing
units.
Included within work in progress is hardware purchased for
installation in progress but not yet complete, time spent on
installations in progress but not yet complete and invoices
received against installations in progress but not yet
complete.
11. Trade and other receivables
As at As at
31 December 31 December
2022 2021
------------ ------------
GBP'000 GBP'000
Trade receivables 18,841 18,795
Loss allowance ( 507 ) (216)
18, 334 18,579
------------ ------------
Other receivables 940 338
R&D tax credit receivable 1,174
Prepayments and accrued income 6, 434 5,124
26, 882 24,041
============ ============
12. Trade and other payables and other non-current liabilities
As at As at
31 December 31 December
2022 2021
------------ ------------
GBP'000 GBP'000
Trade payables 9,096 12,110
Other taxation and social security 3,098 1,020
Accruals and deferred revenue 21,163 20,568
Contingent consideration - 1,000
Other payables 3,062 1,475
------------ ------------
36,419 36,173
============ ============
There is no material difference between the carrying value and
fair value of trade and other payables presented.
The contingent consideration of GBP1,000,000 relates to a
warranty retention liability which was set up on the acquisition of
Pod Point Holding Ltd by the Company in February 2020. No warranty
claims have been made against the shareholders of Pod Point Holding
Limited and the amount was repaid to shareholders of Pod Point
Holding Limited on 11 February 2022.
13. Loans and borrowings
As at As at
31 December 31 December
2022 2021
------------ ------------
GBP'000 GBP'000
Current liabilities
Secured bank loan 2,842 707
Non-current liabilities
Secured bank loan 481 2,326
During the 11 months ended 31 December 2020, the Group entered
into GBP3.5 million facility agreement with Triodos Bank UK Limited
for a period of 5 years, to fund charging units owned by the Group
and installed at customer sites. The facility is structured as a
construction facility while the assets are being installed, at
which point the outstanding balance will become an operating
facility. The interest rate is fixed at 3.5 per cent. The loan is
repayable in eighteen quarterly instalments starting one quarter
after the start of the operating facility.
An additional loan was entered into with Triodos Bank UK Limited
during the year ended 31 December 2022, for GBP1.25 million under
the same facility agreement. The interest rate is fixed at 4.969
per cent. The loan is repayable in eighteen quarterly instalments
starting from the first payment date.
No changes in liabilities arising from financing activities has
been identified during the year ended 31st December 2022 or are
expected in the near future.
14. Share based payments
Charge to the income statement:
The charge to the income statement is set out below:
Year ended Year ended
31 December 31 December
2022 2021
------------ ------------
GBP'000 GBP'000
IPO Restricted Share Award 2,238 2, 256
IPO Performance Share Award 759 136
SIP 360 30
Long-term Incentive Plan 611 -
Deferred Share Bonus Plan 505 -
National insurance on share based payment awards of GBP 630k
(2021: GBP343k) has also been charged to the income statement.
15 . Loss per share
Basic earnings per share is calculated by dividing the loss
attributable to the equity holders of the Group by the weighted
average number of shares in issue during the year.
The group has dilutive ordinary shares for the years ended 31
December 2022 and 31 December 2021, these being share options
granted to employees. As the Group has incurred a loss in all
periods, the diluted loss per share is the same as the basic
earnings per share as the loss has an anti-dilutive effect.
Year ended Year ended
31 December 31 December
2022 2021
------------ ------------
GBP GBP
Loss for the period attributable to equity
holders 20,211,814 14,322,377
Basic and diluted weighted average number
of shares in issue 153,405,628 107,750,615
Earnings/(Loss) per share (Basic and Diluted) (0.13) (0.13)
In determining the share numbers and earnings per share for the
year ended 31 December 2021, calculation above the requirements of
IAS 33 'Earnings per share' have been applied to reflect the bonus
issue and share consolidation detailed in Note 14 as if it had
taken place at the start of the earliest period for which an
earnings per share is presented.
16 . List of subsidiaries
The Group holds share capital in the following companies:
Country
of Principle Registered
Name of company Classification Incorporation activity Ownership Address
------------------- -------------- -------------- --------------- ---------- --------------
Development
and supply 28-42 Banner
of equipment Street Banner
and systems Street,
for electric London,
charging England,
Pod Point Limited Direct United Kingdom vehicles 100% EC1Y 8QE
28-42 Banner
Street
Banner
Street,
London,
Pod Point Holding England,
Limited Direct United Kingdom Holding Company 100% EC1Y 8QE
Development
and supply 28-42 Banner
of equipment Street Banner
and systems Street,
for electric London,
charging England,
Open Charge Limited Direct United Kingdom vehicles 100% EC1Y 8QE
Development
and supply
of equipment
and systems
for electric Engebrets
Pod Point Norge charging vei 3, 0275,
AS Direct Norway vehicles 100% Oslo, Norway
Development
and supply 28-42 Banner
of equipment Street Banner
and systems Street,
for electric London,
Pod Point Asset charging England,
One Limited Direct United Kingdom vehicles 100% EC1Y 8QE
17 . Related parties
Transactions with Shareholders
During the year ending 31 December 2022, the Group had the
following transactions group companies part of the EDF Group and
Legal & General group:
Purchase of
Sales of goods goods
Group Company 'GBP000 'GBP000
----------------------------- --------------- -----------
EDF Energy Limited 335 -
EDF Energy Customers Limited - 390
During the year ending 31 December 2021, the Group had the
following transactions group companies part of the EDF Group and
Legal & General group:
Interest
and fees
on
Sales of Purchase intercompany
goods of goods loan
Group Company 'GBP000 'GBP000 'GBP000
----------------------------- -------- --------- -------------
Legal & General group 46 - 232
EDF Energy Limited 263 - -
EDF Energy Customers Limited - 850 806
Transactions with related parties who are not members of the
Group
During the year ended 31 December 2022 , the Group had the
following transactions with a related party who is not a member of
the Group. Imtech Inviron Limited is a related party by virtue of
their ultimate parent and controlling party being Électricité de
France S.A.:
-- Sale of goods of GBP180k (2021: GBP48k)
Transactions with key management personnel of the Group
Key Management Personnel are defined as member of the Group's
Strategic Board.
See Note 5 for details of compensation of key management
personnel. Certain employees hold shares in the Group, including
Key Management Personnel.
18 . Post balance sheet events
There are no post balance sheet events.
19 . Ultimate parent undertaking and controlling party
The immediate parent company of the Company and its subsidiaries
is EDF Energy Customers Limited , a company registered in the
United Kingdom.
The immediate parent company of EDF Energy Customers Limited is
EDF Energy Limited, a company registered in the United Kingdom.
At 31 December 2022 and 31 December 2021, Électricité de France
SA, a company incorporated in France, is regarded by the Directors
as the Company's ultimate parent company and controlling party.
This is the largest group for which consolidated financial
statements are prepared. Copies of that company's consolidated
financial statements may be obtained from the registered office at
Électricité de France SA, 22-30 Avenue de Wagram, 75382, Paris,
Cedex 08, France.
Principal Risks & Uncertainties
Our risk management processes are as summarised in our FY21
Annual Report and which, in respect of the year ended 31 December
2022, the Board considered that these processes remained
effective.
Our principal risks and uncertainties are discussed at each
meeting of the Audit and Risk Committee together with an evaluation
of our risk management process and any new, emerging or changing
risks identified on the Company's risk register. In respect of the
year ended 31 December 2022, the Board considered our principal
risks and uncertainties remain unchanged from those that were
reported in our H122 Interim Results. The output of this assessment
is set out below, where we provide a summary of each of our
principal risks and the potential consequences should the risk
materialise updated to reflect developments in the second half of
2022.
As a purpose driven company that exists to reduce the
environmental impact of travel on the planet, climate change and
the implications of climate-related risks on our business are
important factors carefully monitored and assessed. In 2022, we
integrated climate-related risk assessment as an explicit
requirement into our risk management processes. As part of this,
climate-related risks have been identified that may affect the
business and/or may contribute towards some of our principal risks
and we will report in more detail on these as part of our FY22
Annual Report. Whilst climate related risks are not currently
recognised as posing a principal risk to the Group, given the
significance of climate change to our mission, the Board and the
executive team continue to review the potential impact of climate
change on the Group and its stakeholders, both internally, on such
matters as our strategy, products and services and operational
measures; as well as externally, on such matters as customer
behaviour, market/ industry developments and regulatory change.
No. Risk Details and Consequences
1 Our growth and success
is highly correlated * EV market is fast moving, characterised by changing
with and thus dependent technologies, price competition, additional
upon the continuing adoption competitors, evolving government regulation and
of and demand for EVs standards, frequent new vehicle announcements and
changing consumer demand and behaviour.
* EVs has grown in recent years in the UK, but no
guarantee of continuing future demand.
* Slower EV sales may result in lower demand for
charging equipment. Could have a material adverse
effect on our business, financial condition, results
of operations and prospects.
* Remains to be seen whether a roll-out of public
charging infrastructure can be successful in areas
with lower concentrations of individuals driving EVs
and therefore reduced usage demand.
* As reported in our Trading Update in November 2022,
growth in PIV registrations slowed markedly in the H2
2022 driven by supply chain challenges causing
reduced EV deliveries into the UK. A live risk that
we are monitoring and the outlook for 2023 remains
difficult to predict.
* In the longer term we expect the UK to return to
rapid growth in PIV registrations as the supply chain
restrictions and general economy recovers.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
2 Competition in the industry
and market segment in * Our industry and market segment are highly
which we operate may competitive.
materially adversely
affect our market share,
margins and overall profitability * Competition comes from large international
organisations as well as smaller start-ups.
Competition is based on several key criteria
including price, product technology and performance,
delivery times, flexibility, design and innovation,
brand recognition, customer access and sales power as
well as the scope and quality of services.
* Automotive OEM partners may develop or acquire
certain capabilities in-house such as developing
their own brand, reducing demand for our products,
systems and services.
* These developments could limit our addressable market
and ability to gain new customers negatively
impacting our business, financial condition, results
of operations and prospects.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
3 Delays to Product Development
* Global supply chain challenges and component cost
increases in H1 2022 required us to direct product
development resources towards limited redesign of our
existing products to facilitate greater component
flexibility, supply chain resilience and protect
margins.
* This mitigated exposure to market-wide supply and
production disruption and enabled us to meet customer
demand during challenging global macro-economic
conditions.
* Delay to new technology developments and innovation
affecting roll out of new products against our
roadmap could potentially impact desirability and
demand for our products (as described in Risk 2).
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
4 Ongoing and potential
future disruptions to * Global supply chain for EVs, EV production and EV
the global supply chain charger componentry remains disrupted as a result of
could have a material a number of COVID-19 related impacts - including
adverse effect on demand factory closures, shortages in semiconductors and the
for our products as well repurposing of factories and production lines for
as on our ability to COVID-19 related medical devices and equipment.
source components for
our charge points
* Global supply of semiconductors experienced severe
constraints in 2022.
* At FY22, long EV delivery lead times persist and this
has a consequential impact on demand for EV charge
points.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
5 Government and regulatory
initiatives, the outcomes * Market for EVs and EV-related products is new and
of which are unknown, growing quickly. Applicable regulations evolve at a
could materially impact corresponding pace. It remains the focus of various
our business ongoing Government and regulatory initiatives and
enquiries, the outcomes of which are unknown.
* Failure to comply with laws or regulations could
result in fines, sanction, claims, liabilities and/or
reputational damage which could adversely affect our
business, financial condition, results of operations
and prospects.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
6 We are exposed to health
and safety risks related * All charge points conduct electricity and as such
to our products and the carry an inherent potential electrical hazard risk.
installation, maintenance
and operation of electrical
equipment and systems * Our charge point operations involve the installation,
maintenance and operation of electrical equipment and
systems, which could expose our customers, employees,
partners, installers and the public to a number of
hazards, including electrical lines and equipment,
mechanical failures, transportation accidents and
adverse weather conditions.
* These hazards can cause personal injuries and loss of
life, damage or destruction of property and equipment
and other related damage, liability or loss.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
7 Our technology could
have undetected defects, * Our software and hardware may in future contain
errors or bugs in hardware undetected defects or errors as we evolve the
or software features and functionality of our software platform
and charge point hardware through updates and
enhancements.
* It is possible, this process may introduce defects or
errors that may not be detected until after
deployment to customers and installation of charge
points.
* In addition, if updates or patches are not
implemented, or our products and services are not
used correctly or as intended, inadequate performance
or disruptions in service may result.
* Events arising as a result of a malfunctioning
charging station or defect or bug in the software or
hardware could cause loss, damage or injury to
persons or property and a resulting claim from the
affected parties. Any insurance that we carry may not
be sufficient, or may not provide cover in all
situations.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
8 The deterioration of
economic conditions in * Our business and results of operations are affected
the UK, a deterioration by the general economic conditions of the UK.
in the UK's economic
relationship with the
EU or a future health * Changes in these economic conditions impact consumer
pandemic may materially confidence and spending as well as the general
adversely impact our business climate and levels of business investment.
business, financial condition
and results of operations.
* As demand for our products is closely related to
demand for EVs, any negative impact on consumer
confidence and consumer spending is likely to be
reflected in the number of new EVs purchased which in
turn is likely to impact demand for our products.
* Uncertainty and unpredictability concerning the UK's
legal, political and economic relationships with the
EU and the European Economic Area following Brexit
could adversely affect trading agreements and/or lead
to logistical and administrative issues for
cross-border shipments. Our orders could be delayed
or we could be required to pay additional, unexpected
tariffs.
* Impact of COVID-19 created significant volatility in
the global economy and led to reduced economic
activity. The extent to which the COVID-19 pandemic
and/or future health pandemics impact our business,
financial condition, results of operations and
prospects will depend on future developments, which
are uncertain and cannot be predicted.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
9 Disruptions to our network
and IT systems, including * We depend on our IT systems to, among other things,
from malware, viruses, operate and manage our charge points, exchange
hacking, phishing attacks information with our commercial partners and
and spamming customers and to maintain financial records and
accuracy.
* IT systems failures, including risks associated with
upgrading systems, network disruptions or a cyber
attack could disrupt operations or lead to fraud by
compromising our cyber security and the protection of
customer or Group information and financial reporting
and impeding processing of transactions, leading to
potential liability and increased costs.
* Computer malware, viruses, physical break-ins or a
cyber attack and similar disruptions could lead to
fraudulent activity, regulatory sanctions, claims and
other liabilities and interruption and delays to our
services and operations as well as loss, misuse or
theft of data.
* 3G and 4G network outages could adversely affect both
our network communication capabilities, as well as
user interaction with our mobile application and
charge points. Poor app service could have a material
adverse effect on our business, financial condition,
results of operations and prospects.
* Computer systems, including back-up systems, could be
damaged or interrupted by power outages, computer and
telecommunications failures, computer viruses,
internal or external security breaches, events such
as fires, earthquakes, floods and/or errors by our
employees.
* We collect personal information in relation to our
customers and employees and other data as part of our
business operations. We are exposed to the risk that
such data could be wrongfully appropriated, lost or
disclosed, damaged or processed in breach of privacy
or data protection laws.
----------------------------------- -------------------------------------------------------------------
No. Risk Details and Consequences
----------------------------------- -------------------------------------------------------------------
10 Our success depends
on our ability to hire * Future performance depends on the continued service
and retain management, of senior managers and other key personnel, including
key employees and other employees involved in research and development, sales,
qualified marketing and employees with critical know-how and
and skilled employees expertise.
and we may not be able
to attract and retain
such personnel * Loss of senior managers or other key personnel could
have a material adverse effect on our business,
financial condition, results of operations and
prospects.
* Success also depends on ability to attract, retain
and develop qualified and skilled personnel. This is
especially important given the increasingly
competitive market for talent and the expected high
growth in the EV charging segment.
* New regulations in the industry could require
specific qualifications to install EV charging
equipment, which could result in a reduced labour
force and higher costs.
----------------------------------- -------------------------------------------------------------------
[1] Consistent methodology with 2021 reporting.
(2) Home installation units (excluding wholesale units) as a %
of reported SMMT PIV registrations in same period
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END
FR TRMATMTJBMMJ
(END) Dow Jones Newswires
February 17, 2023 02:00 ET (07:00 GMT)
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